Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said two of its subsidiaries will dismiss 2,400 workers after a recent government decision.
AHMSA said state-run electricity company CFE halted a supply contract it had with AHMSA’s subsidiaries Micare and Dos Republicas Coal Partnership. CFE supplied coal to two facilities in Coahuila as part of a 27-year agreement.
AHMSA said it will dismiss 2,000 workers at Micare, and another 400 at Dos Republicas Coal Partnership in Texas. The move will reportedly result in a $250 million equipment loss as the two companies suspend activities.
AHMSA blamed CFE and said it will sue the state-run energy provider, and also demand it pay for losses due to the government decision.